Interim / Quarterly Report • Jul 22, 2010
Interim / Quarterly Report
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To be distributed on 22 July 2010 Continental Time 07.30h. U.K. 06.30h. / U.S. Eastern Standard Time 01.30h.
DOCDATA N.V. has made a flying start in the first half-year 2010. Both lines of business, technology company IAI industrial systems and e-commerce service company Docdata show excellent results.
Technology company IAI industrial systems was able to deliver all orders as planned in the first half 2010. In addition, the organisation has expanded and is prepared for further growth.
The revenue and number of processed transactions of the e-commerce service company Docdata increased substantially in the first half 2010. This is due to the success of our customers in the Netherlands and Germany and the acquisition of the business activities of the former Dohmen Solutions Group in Germany.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Despite the current economic crisis we had to have all hands on deck in the first six month to realise the growth, resulting in the expansion of our work force with almost 300 employees to a large extent in Germany. This had an extreme impact on our organisation and resulted in additional costs. The priority however remains focused on a very high delivery performance for our customers."
| Revenue | Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
Growth |
|---|---|---|---|
| (in thousands, except percentage figures) | € | € | % |
| Technology company IAI industrial systems | 10,323 | 4,187 | + 147% |
| E-commerce service company Docdata | 26,362 | 22,082 | + 19% |
| (excluding Docdata media and former Dohmen Solutions) Docdata media |
5,610 | 8,627 | -/- 35% |
| Acquisition former Dohmen Solutions | 3,694 | - | - |
| Total | 45,989 | 34,896 | + 32% |
| Results and Financial position half-year 2009 (unaudited) | |
|---|---|
| ----------------------------------------------------------- | -- |
| Half-year ended at | ||||||
|---|---|---|---|---|---|---|
| (in millions, except percentage figures and per share data) |
30 June 2010 | 30 June 2009 | ||||
| € | % | € | % | |||
| Revenue | ||||||
| E-commerce service company Docdata | 35.7 | 77.6 | 30.7 | 88.0 | ||
| Technology company IAI industrial systems | 10.3 | 22.4 | 4.2 | 12.0 | ||
| Total | 46.0 | 100.0 | 34.9 | 100.0 | ||
| Gross profit E-commerce service company Docdata |
8.6 | 24.0 | 8.9 | 28.8 | ||
| Technology company IAI industrial systems | 4.1 | 40.0 | 1.9 | 45.5 | ||
| Total | 12.7 | 27.6 | 10.8 | 30.8 | ||
| Operating profit (EBIT) | ||||||
| E-commerce service company Docdata | 0.4 | 1.0 | 1.5 | 4.9 | ||
| Technology company IAI industrial systems | 2.8 | 27.2 | 0.9 | 21.0 | ||
| Total | 3.2 | 6.9 | 2.4 | 6.8 | ||
| Profit for the half-year | 2.6 | 5.6 | 1.9 | 5.4 | ||
| Basic earnings per share | 0.38 | 0.28 | ||||
| Diluted earnings per share | 0.37 | 0.27 | ||||
| Balance sheet total | 50.2 | 39.1 | ||||
| Equity | 26.6 | 21.7 | ||||
| Solvency ratio (Equity / Balance sheet total) | 53.0% | 55.6% | ||||
Technology company IAI industrial systems delivered many personalisation systems in the first half-year 2010. As a result the revenue of IAI industrial systems increased with € 6.1 million (+147%). The operating result for the first half-year 2010 is exceptionally high due to several specific orders. Per end of June 2010 the order book included orders for a revenue of € 8.6 million which will be delivered for a large part in 2010 (end 2009: € 13.8 million). The pipeline is well filled and the company is working hard to convert this pipeline into orders.
In the document security market IAI industrial systems is seen as the highest quality supplier of production systems to personalise and/or secure documents issued by governments. IAI has expanded the product range considerably in the document security market through the development of new systems in the past years.
In the Solar market IAI offers systems for the production of solar cells or solar panels. In 2010 IAI delivered several 'lab'-systems and further increased its reputation in the market. To realise unique applications in solar cells, IAI has invested in an excimer laser which will be used for application oriented research. This laser will also be used for application development in other markets. Due to the current economic crisis we expect to deliver production systems not before 2011.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "We remain ideally positioned in the document security market because of our high quality, reliable and customised systems. This also gives us the possibility to compete with the major players in the market. We expect that governments world-wide will continue to give a high priority to investments in document security. We will continue to invest in new applications and systems."
E-commerce service company Docdata again achieved a strong increase in the number of unique transactions compared to 2009. In the first half 2010 nearly 13 million unique transactions have been processed. The strong revenue growth was mainly achieved by the success of existing clients and the acquisition of the business activities of the former Dohmen Solutions Group. As these activities have been acquired for a relatively small amount from Dohmen Solutions which was in suspension, this does result in restructuring costs fully charged to the operating result of Docdata. As a result of the acquisition one-off costs of € 1.3 million have been recognised in the first half-year 2010. For the second halfyear 2010 we expect to incur a comparable amount of costs. These substantial one-off costs in combination with the relatively low acquisition price, make it an interesting deal compared to the acquired customer base.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Thanks to the acquisition of the activities of Dohmen Solutions we have further strengthened our position in Germany and have taken a top 10 position in the e-commerce service market. Through five sites spread across Germany we can now provide our customers a full e-commerce service."
The revenue of DOCDATA N.V. increased with € 11.1 million to € 46.0 million (+32%) in the first half-year 2010. IAI industrial systems has realised an increase in revenue of € 6.1 million (+147%). Docdata has realised with the commerce, payments and fulfilment services an autonomous revenue increase of € 4.3 million (+19%), predominantly due to the increased number of transactions of more than 27% compared to last year. The acquisition of the activities of the former Dohmen Solutions Group contributed to revenue for € 3.7 million in the first half-year 2010 as from 16 April 2010. Finally, Docdata media incurred a decrease in revenue of € 3.0 million (-/- 35%) due to the further decline of replication activities.
In the first half-year 2010 a higher gross profit of € 12.7 million has been realised compared to the € 10.8 million in the first half-year 2009 (+18%). The gross profit margin for the first half-year 2010 is 27.6% compared to 30.8% in the first half-year 2009, with a decrease of the gross profit margin for both lines of business. For Docdata this lower gross profit margin is mainly the result of lower realised efficiency due to the tremendous growth of some or our largest customers in the Netherlands and Germany. For IAI industrial systems the decrease of the gross profit margin is due to different size and composition of deliveries in both comparable periods, taking into account that in the first half-year 2009 almost no deliveries were realised.
In the first half-year 2010 an operating result before financing result (EBIT) of € 3.2 million has been realised compared to € 2.4 million in the first half-year 2009. The operating result of the technology company IAI industrial systems increased with € 1.9 million as a result of the delivery of more systems in the first half-year 2010. The operating result of the e-commerce service company Docdata decreased with € 1.1 million due to several one-off effects:
As a result of the improved operating result of both lines of business together, the profit for the first half-year 2010 amounts to € 2.6 million which is € 0.7 million (+36%) higher compared to the first half-year 2009.
DOCDATA N.V. has maintained its strong financial position during the first half-year 2010 with a solvency ratio of 53.0% per 30 June 2010 (31 December 2009: 55.9%). In relation to the Company's liquidity, the cash surplus position of € 6.1 million at 31 December 2009 has decreased with € 2.8 million to € 3.3 million at 30 June 2010. DOCDATA N.V. has realised in the first half-year 2010 a cash flow from operating activities of € 5.4 million (first half-year 2009: € 0.2 million), which is influenced to a large extent by cash flows generated from the delivery in February 2010 of the second part of the Bulgarian order by IAI industrial systems B.V. and the receipt of an income tax receivable by the Dutch fiscal entity. Furthermore, DOCDATA N.V. has drawn € 4.4 million from the existing credit facility with Dresdner Bank AG (now part of Commerzbank AG) to finance the following:
Of these total available funds of € 9.8 million, € 3.7 million was spent on the payment of the 2009 dividend. In addition, the Group has invested a total amount of € 4.5 million in the half-year ended 2010: € 3.2 million in property, plant and equipment (mainly warehousing equipment and investments in IT infrastructure) and € 1.3 million in intangibles (predominantly IT platform and customer contracts from the former Dohmen Solutions Group). The remaining € 1.6 million has resulted in higher cash and cash equivalents per 30 June 2010.
As already announced in February 2010, the focus of DOCDATA N.V. for 2010 is on growth, both autonomous and through acquisitions. The first half-year 2010 has proven that both lines of business of the Company in terms of achieving autonomous growth are fully on track. With the acquisition of the assets and business activities of the former Dohmen Solutions Group in Germany the target to achieve a top 10 position in Germany has already been realised. For the second half-year 2010 the focus will be on realisation of further autonomous profitable growth and process optimisation.
In the market for document security, technology company IAI industrial systems has realised outstanding results in the first half-year 2010. The focus for the second half-year 2010 will be on further development of new systems for the various markets in which IAI operates and on bringing in new orders for 2011. In the Solar market we do not expect substantial revenue for IAI industrial systems in the second half-year 2010. IAI industrial systems' order book amounts to € 8.6 million at 30 June 2010 and will be delivered mainly in 2010.
The management of DOCDATA N.V. expects that the operating result for the full-year 2010 will be lower than that for the full-year 2009, due to one-off costs related to the acquisition of the business activities of the former Dohmen Solutions Group.
The consolidated financial statements of DOCDATA N.V. are prepared in accordance with the International Financial Reporting Standards as adopted by the European Union (hereafter IFRS). For an overview of the significant accounting policies under IFRS, please refer to the 2009 Annual Report that is available at the Company and can also be downloaded from the Company's corporate website, www.docdatanv.com. The interim financial report has been prepared in accordance with IAS 34 ('Interim Financial Reporting').
The financial information included in this interim report and its enclosures have not been audited by the external auditors.
For a detailed review of the 2010 half-year results please refer to the attached enclosure 'Interim Financial Information for the half-year ended 30 June 2010' with Appendix.
Today, Thursday 22 July 2010, management of DOCDATA N.V. will discuss the 2010 half-year results in a meeting for which both financial press and analysts have been invited, to be held at 10.30AM Amsterdam time in the Mercurius room of the Financieel Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam (Beursplein 5, 1012 JW Amsterdam, telephone +31-20-5505505).
------------------------------------------
The listed DOCDATA N.V. exists of two lines of business:
Technology company IAI industrial systems (www.iai-industrial-systems.com) is a high tech engineering company specialised in developing and building systems for very accurate and high speed processing of all kinds of products and materials. IAI delivers clients globally in the following sectors:
E-commerce service company Docdata (www.docdata.com) is a European market leader with a strong basis in The Netherlands, Germany and the United Kingdom, and exists of four services:
Waalwijk, the Netherlands, 22 July 2010
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31 416 631 100 Corporate website: www.docdatanv.com
Statement pursuant to article 5:25d section 2 sub c of the Dutch Financial Supervision Act ("Wet financieel toezicht", Wft)
The DOCDATA N.V. Management Board declares, that to the best of their knowledge:
Waalwijk, 22 July 2010
The Management Board,
M.F.P.M. Alting von Geusau, CEO
M.E.T. Verstraeten, CFO
The interim financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter "IFRS") and its interpretations adopted by the International Accounting Standards Board (IASB).
| (in thousands, except percentage figures) | Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
|||
|---|---|---|---|---|---|
| Revenue by line of business | € | % | € | % | |
| E-commerce service company Docdata | 35,666 | 77.6 | 30,709 | 88.0 | |
| Technology company IAI industrial systems | 10,323 | 22.4 | 4,187 | 12.0 | |
| Total | 45,989 | 100.0 | 34,896 | 100.0 |
| (in thousands, except percentage figures) | Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
||
|---|---|---|---|---|
| Gross profit (margin) by line of business (margin as % of revenue by line of business) |
€ | % | € | % |
| E-commerce service company Docdata | 8,563 | 24.0 | 8,854 | 28.8 |
| Technology company IAI industrial systems | 4,126 | 40.0 | 1,903 | 45.5 |
| Total | 12,689 | 27.6 | 10,757 | 30.8 |
| (in thousands, except percentage figures) | Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
||
|---|---|---|---|---|
| Operating profit (margin) by line of business (margin as % of revenue by line of business) |
€ | % | € | % |
| E-commerce service company Docdata | 352 | 1.0 | 1,496 | 4.9 |
| Technology company IAI industrial systems | 2,807 | 27.2 | 881 | 21.0 |
| Total | 3,159 | 6.9 | 2,377 | 6.8 |
| Selling & Administrative expenses (as % of revenue) | ||||
| Selling expenses | 2,681 | 5.8 | 2,314 | 6.6 |
| Administrative expenses | 6,876 | 15.0 | 5,897 | 16.9 |
| Total | 9,557 | 20.8 | 8,211 | 23.5 |
| Selling & Administrative expenses by line of | ||||
| business (as % of revenue by line of business) | ||||
| E-commerce service company Docdata | 8,219 | 23.0 | 7,189 | 23.4 |
| Technology company IAI industrial systems | 1,338 | 13.0 | 1,022 | 24.4 |
| Total | 9,557 | 20.8 | 8,211 | 23.5 |
| Other operating income and expenses (as % of revenue) |
||||
| Other operating income | 265 | 0.6 | 53 | 0.1 |
| Other operating expenses | (238) | (0.5) | (222) | (0.6) |
| Net other operating expenses | 27 | 0.1 | (169) | (0.5) |
Net financing income for the half-year ended 30 June 2010 amounted to just over € 0.1 million compared to net financing expenses of nearly € 0.2 million for the half-year ended 30 June 2009. Net bank interest expenses, as well as foreign currency exchange results are comparable for both half-years ended 30 June 2010 and 30 June 2009.
DOCDATA's effective tax rate in the half-year ended 30 June 2010 was 22.3% with an income tax expense of € 0.7 million on a profit before income tax of € 3.3 million. In the half-year ended 30 June 2009, the profit before income tax amounted to € 2.6 million and the income tax expense amounted to € 0.7 million (effective tax rate: 27.7%).
The income tax expense of € 0.7 million in the half-year ended 30 June 2010 is the combined result of the following tax treatments of the results per country:
The General Annual Meeting of Shareholders held on 12 May 2010 approved the proposal to distribute a dividend of € 0.55 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of € 3.7 million on retained earnings within the equity of the Company in the half-year ended 30 June 2010.
In the half-year ended 30 June 2010, the Group realised net cash from operating activities of € 5.4 million (half-year ended 30 June 2009: € 0.2 million). Major items resulting in this high net cash from operating activities were the delivery by IAI industrial systems B.V. in February 2010 of the remaining part of the Bulgarian order, as well as the repayment by the Dutch tax authorities of € 1.3 million prepaid income taxes for the year 2009 due to the recording by the Dutch fiscal entity of an income tax credit on the liquidation loss for docdata media Ltd. in the UK.
Furthermore, the Group has drawn € 4.4 million from the credit facility with Dresdner Bank AG (now part of Commerzbank AG) in the half-year ended 30 June 2010 to finance the following:
Of these total available funds of € 9.8 million, € 3.7 million was spent on the payment of the 2009 dividend. In addition, the Group has invested a total amount of € 4.5 million in the half-year ended 30 June 2010: € 3.2 million in property, plant and equipment (mainly warehousing equipment and investments in IT infrastructure) and € 1.3 million in intangibles (predominantly the IT platform and the customer contracts from the former Dohmen Solutions Group, as well as some IT development costs). The remaining € 1.6 million has resulted in higher cash and cash equivalents per 30 June 2010.
In the half-year ended 30 June 2010 1,500 share options were exercised from the 2006 series at a price of € 8.10 per share. The underlying shares have been delivered by the Company from the own shares in possession of the Company. The proceeds of € 13 thousand have been credited to equity under reserves, as the purchase of own shares has been charged to reserves in the past. Per 30 June 2010, the Company owned 349,982 own shares (5.00%), which number is the same as the number of own shares currently owned by the Company per 22 July 2010.
Waalwijk, 22 July 2010
Balance sheets before appropriation of profit.
| 30 June | 31 December |
|---|---|
| 2009 | |
| € | € |
| 8,394 | 6,221 |
| 9,812 | 8,633 |
| 62 | 62 |
| 100 | 100 |
| 200 | 200 |
| 801 | 1,130 |
| 19,369 | 16,346 |
| 5,542 | 6,861 |
| 1,578 | 3,038 |
| 15,340 | 15,566 |
| 7,724 | 6,147 |
| 662 | 1,054 |
| 30,846 | 32,666 |
| 50,215 | 49,012 |
| 700 | |
| 16,854 | |
| (1,030) | |
| (2,940) | |
| 13,720 | |
| 27,304 | |
| 107 | |
| 26,637 | 27,411 |
| 313 | |
| 288 | |
| 597 | 601 |
| - | |
| 340 | |
| 18,668 | |
| 1,039 | |
| 953 | |
| 22,981 | 21,000 |
| 23,578 | 21,601 |
| 50,215 | 49,012 |
| 2010 700 16,854 (517) (2,854) 12,454 26,637 - 313 284 4,400 451 16,849 602 679 |
| Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
|||
|---|---|---|---|---|
| (in thousands, except earnings per share and average shares outstanding) |
€ | % | € | % |
| Revenue Cost of sales |
45,989 (33,300) |
100.0 (72.4) |
34,896 (24,139) |
100.0 (69.2) |
| Gross profit | 12,689 | 27.6 | 10,757 | 30.8 |
| Other operating income | 265 | 0.6 | 53 | 0.1 |
| Selling expenses | (2,681) | (5.8) | (2,314) | (6.6) |
| Administrative expenses | (6,876) | (15.0) | (5,897) | (16.9) |
| Other operating expenses | (238) | (0.5) | (222) | (0.6) |
| Operating profit before financing result | 3,159 | 6.9 | 2,377 | 6.8 |
| Financial income | 240 | 0.5 | 278 | 0.8 |
| Financial expenses | (110) | (0.2) | (97) | (0.3) |
| Net financing income | 130 | 0.3 | 181 | 0.5 |
| Share of profits of associates | - | - | 36 | 0.1 |
| Profit before income tax | 3,289 | 7.2 | 2,594 | 7.4 |
| Income tax expense | (734) | (1.6) | (718) | (2.0) |
| Profit for the period | 2,555 | 5.6 | 1,876 | 5.4 |
| Attributable to: | ||||
| Equity holders of the parent | 2,662 | 5.8 | 1,838 | 5.3 |
| Minority interest Profit for the period |
(107) 2,555 |
(0.2) 5.6 |
38 1,876 |
0.1 5.4 |
| Weighted average number of shares outstanding Weighted average number of shares (diluted) |
6,649,000 7,000,000 |
6,649,000 6,962,000 |
||
| Earnings per share Basic earnings per share Diluted earnings per share |
0.38 0.37 |
0.28 0.27 |
||
| Half-year ended 30 June 2010 |
Half-year ended 30 June 2009 |
|
|---|---|---|
| (in thousands) | € | € |
| Cash flows from operating activities | ||
| Profit for the period | 2,555 | 1,876 |
| Adjustments for: | ||
| Depreciation and amortisation | 1,490 | 1,622 |
| Costs share options and delivered shares | 73 | 94 |
| Financial expenses | 110 | 97 |
| Financial income | (240) | (278) |
| Share of profits of associates | - | (36) |
| Income tax expense | 734 | 718 |
| Cash flows from operating activities before changes in working capital and provisions |
4,722 | 4,093 |
| (Increase) / decrease in trade and other receivables and | ||
| assets held for sale | 777 | 1,336 |
| (Increase) / decrease in inventories | 1,319 | (3,563) |
| Increase / (decrease) in trade and other payables and liabilities held for sale |
(2,132) | (853) |
| Increase / (decrease) in provisions and employee benefits | (437) | 10 |
| Cash generated from the operations | 4,249 | 1,023 |
| Interest paid | (108) | (165) |
| Interest received | 81 | 118 |
| Income taxes received / (paid) | 1,199 | (769) |
| Net cash from operating activities | 5,421 | 207 |
| Cash flows from investing activities Acquisition of property, plant and equipment |
(3,213) | (1,102) |
| Acquisition of intangible assets | (1,299) | (57) |
| Acquisition of subsidiaries | - | (582) |
| Acquisition of associates and other investments | - | (62) |
| Proceeds from sale of property, plant and equipment | 6 | 2 |
| Net cash from investing activities | (4,506) | (1,801) |
| Cash flows from financing activities | ||
| Proceeds from bank overdrafts | 4,400 | - |
| Proceeds from exercise of share options Dividends paid |
13 (3,658) |
141 (2,031) |
| Repayment of bank overdrafts | - | (1,185) |
| Proceeds from interest-bearing loans and other borrowings | - | 60 |
| Net cash from financing activities | 755 | (3,015) |
| Net increase / (decrease) in cash and cash equivalents | 1,670 | (4,609) |
| Cash and cash equivalents at the beginning of the period | 6,147 | 6,034 |
| Effect of exchange rate fluctuations on cash held | (93) | 188 |
| Cash and cash equivalents at the end of the period | 7,724 | 1,613 |
| Total equity | |||||||
|---|---|---|---|---|---|---|---|
| Share | Share | Retained | attributable to equity holders |
Minority | Total | ||
| capital | premium | Reserves | earnings | of the parent | interest | equity | |
| (in thousands) | € | € | € | € | € | € | € |
| Equity Statement 2009 | |||||||
| Balance at 1 January 2009 | 700 | 16,854 | (4,531) | 7,882 | 20,905 | 292 | 21,197 |
| Dividend distribution | - | - | - | (1,993) | (1,993) | (38) | (2,031) |
| Exercised share options | - | - | 141 | - | 141 | - | 141 |
| Delivered shares for remuneration | - | - | 37 | - | 37 | - | 37 |
| Costs share options | - | - | 57 | - | 57 | - | 57 |
| Consolidation of former associate | - | - | - | - | - | (5) | (5) |
| Total recognised income and | |||||||
| expense for the period | - | - | 443 | 1,838 | 2,281 | 38 | 2,319 |
| Balance at 30 June 2009 | 700 | 16,854 | (3,853) | 7,727 | 21,428 | 287 | 21,715 |
| Balance at 1 July 2009 | 700 | 16,854 | (3,853) | 7,727 | 21,428 | 287 | 21,715 |
| Costs share options | - | - | 43 | - | 43 | - | 43 |
| Total recognised income and | |||||||
| expense for the period | - | - | (160) | 5,993 | 5,833 | (180) | 5,653 |
| Balance at 31 December 2009 | 700 | 16,854 | (3,970) | 13,720 | 27,304 | 107 | 27,411 |
| Equity Statement 2010 | |||||||
| Balance at 1 January 2010 | 700 | 16,854 | (3,970) | 13,720 | 27,304 | 107 | 27,411 |
| Dividend distribution | - | - | - | (3,658) | (3,658) | - | (3,658) |
| Exercised share options | - | - | 13 | - | 13 | - | 13 |
| Costs share options | - | - | 73 | - | 73 | - | 73 |
| Realised translation reserves | - | - | 270 | (270) | - | - | - |
| Total recognised income and | |||||||
| expense for the period | - | - | 243 | 2,662 | 2,905 | (107) | 2,798 |
| Balance at 30 June 2010 | 700 | 16,854 | (3,371) | 12,454 | 26,637 | - | 26,637 |
| Half-year 2010 |
Half-year 2009 |
|
|---|---|---|
| (in thousands) | € | € |
| Foreign exchange translation differences | 243 | 443 |
| Income / (Expense) recognised directly in equity | 243 | 443 |
| Profit for the period | 2,555 | 1,876 |
| Total recognised income and expense for the period | 2,798 | 2,319 |
| Attributable to: | ||
| Equity holders of the parent | 2,905 | 2,281 |
| Minority interest | (107) | 38 |
| Total recognised income and expense for the period | 2,798 | 2,319 |
DOCDATA N.V. (referred to as "DOCDATA" or the "Company") is a company domiciled in Waalwijk, the Netherlands. The consolidated interim financial statements of DOCDATA N.V. as at and for the half-year ended 30 June 2010 comprise DOCDATA N.V. and its subsidiaries (together referred to as the "Group") and the Group's interest in associates and jointly controlled entities.
The consolidated financial statements of the Group as at and for the year ended 31 December 2009 are available upon request from the Company's registered office at Energieweg 2, 5145 NW in Waalwijk, the Netherlands, or at the Company's corporate website, www.docdatanv.com.
These consolidated interim financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting). They do not include all of the information required for full annual financial statements, and should therefore be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2009.
The consolidated financial statements of the Group are prepared in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS"). The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2009. For a summary of the significant accounting policies under IFRS, please refer to the Group's Annual Report for the financial year ended 31 December 2009.
The consolidated interim financial statements and the reconciliations included in this report and its enclosures have not been audited by the external auditors.
In the opinion of the management, these consolidated interim financial statements include all adjustments necessary for a fair presentation of the financial position, operating results and cash flows of all reporting periods herein. All such adjustments are of a normal recurring nature, except for recorded non-recurring expenses related to the acquisition of the former Dohmen Solutions business activities (including acquisition costs, advisory fees, restructuring expenses, etc.).
The results of the operations for the half-year ended 30 June 2010 are not necessarily indicative of the results for the entire financial year ending 31 December 2010.
From 1 January 2008 onwards, DOCDATA has changed the organisation structure from a country organisation to a divisional structure. Starting the financial year 2008, DOCDATA identifies for the purpose of preparing financial statements the following two lines of business: Internet service company Docdata (consisting of the following four services: Docdata commerce, Docdata payments, Docdata fulfilment and Docdata media) and Technology company IAI industrial systems. Starting 1 January 2010, the names of the two lines of business are:
The segmentation for both comparable consolidated interim financial statements for the half-year ended 30 June 2009 and the half-year ended 30 June 2010 has been prepared accordingly and in a consistent way.
In the consolidated interim financial statements for the half-year ended 30 June 2010, the following treatment has been applied for the following incorporations:
In the consolidated financial statements for the year ended 31 December 2009, the following treatment has been applied for the following incorporation and acquisition:
| 30 June 2010 |
31 December 2009 |
|
|---|---|---|
| (in thousands) | € | € |
| Land and buildings | 1,297 | 1,347 |
| Machinery and equipment | 3,749 | 2,935 |
| Other | 2,254 | 1,881 |
| 7,300 | 6,163 | |
| Under construction | 1,094 | 58 |
| Total | 8,394 | 6,221 |
The book value of property, plant and equipment has increased with € 2.2 million over the half-year ended 30 June 2010 as a combined result from capital expenditure for € 3.2 million, depreciation charges for € 1.1 million and currency exchange profits for € 0.1 million on the UK property, plant and equipment accounted for in British pounds. Included in capital expenditure in the half-year ended 30 June 2010 is the purchase price of in total € 0.2 million paid at acquisition for the equipment bought from the former Dohmen Solutions Group, and € 0.6 million investments by IAI industrial systems B.V. in buildings and laser production equipment. The remainder of about € 2.4 million relates to investments in the fulfilment warehouses of the Group and is predominantly spent in Germany for the warehouses located in the Berlin and Munich regions.
| 30 June 2010 |
31 December 2009 |
|
|---|---|---|
| (in thousands) | € | € |
| Goodwill | 6,889 | 6,626 |
| Customer contracts | 1,062 | 468 |
| IT platforms | 1,861 | 1,539 |
| 9,812 | 8,633 | |
| Under construction | - | - |
| Total | 9,812 | 8,633 |
The book value for intangible assets has increased with € 1.2 million during the half-year ended 30 June 2010, due to the following:
| 30 June 2010 |
31 December 2009 |
|
|---|---|---|
| (in thousands) | € | € |
| Raw and auxiliary materials | 1,190 | 720 |
| Work in progress | 3,951 | 6,066 |
| Finished goods | 401 | 75 |
| Total | 5,542 | 6,861 |
The book value of inventories decreased € 1.3 million in the half-year ended 30 June 2009, which is the combined effect of an inventory increase from the acquisition of the former Dohmen Solutions business activities (€ 0.5 million) and decreased work in progress at IAI industrial systems (€ 1.8 million). IAI industrial systems' order book decreased about € 5 million from € 13.8 million at 31 December 2009 to € 8.6 million at 30 June 2010 resulting from system deliveries during the half-year ended 30 June 2010 for a revenue of about € 10 million and new orders booked with a total sales value of about € 5 million.
| E-commerce service company Docdata |
Technology company IAI industrial systems |
|||
|---|---|---|---|---|
| (in thousands, except earnings per share and average shares outstanding) |
€ | % | € | % |
| Revenue | 35,666 | 100.0 | 10,323 | 100.0 |
| Cost of sales | (27,103) | (76.0) | (6,197) | (60.0) |
| Gross profit | 8,563 | 24.0 | 4,126 | 40.0 |
| Other operating income | 245 | 0.7 | 20 | 0.2 |
| Selling expenses | (2,290) | (6.4) | (391) | (3.8) |
| Administrative expenses | (5,929) | (16.6) | (947) | (9.2) |
| Other operating expenses | (237) | (0.7) | (1) | - |
| Operating profit before financing result | 352 | 1.0 | 2,807 | 27.2 |
| Financial income | 207 | 0.6 | 33 | 0.3 |
| Financial expenses | (77) | (0.2) | (33) | (0.3) |
| Net financing income / (expenses) | 130 | 0.4 | - | - |
| Share of profits of associates | - | - | - | - |
| Profit before income tax | 482 | 1.4 | 2,807 | 27.2 |
| Income tax profit / (expense) | 99 | 0.2 | (833) | (8.1) |
| Profit for the period | 581 | 1.6 | 1,974 | 19.1 |
| Attributable to: | ||||
| Equity holders of the parent | 688 | 1.9 | 1,974 | 19.1 |
| Minority interest | (107) | (0.3) | - | - |
| Profit for the period | 581 | 1.6 | 1,974 | 19.1 |
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